End loopholes

February 12, 2009|From the Kansas City (Mo.) Star

Another day, another Washington nomination in trouble on those pesky tax issues.

These people want to help run the country, enforce its laws, spend our tax dollars. So canÂ?t they at least pay their taxes on time Â? all of the taxes they owe, and not just when they realize they are about to face public scrutiny?

Eyebrows were understandably raised, for example, over Treasury Secretary Timothy GeithnerÂ?s failure to pay taxes on certain income despite being advised in writing of the need to do so.

Such episodes underscore the fact that federal and state income tax systems are far too complex. Comedians often make the same point. David LettermanÂ?s Top Ten Ways to Make Doing Your Taxes More Fun some years ago: Â?Deduct $100 in medical expenses for all the paper cuts you suffered because the tax form is 75 damn pages long!Â?

The tax code is too complex because lawmakers and presidents have stuffed it full of special tax breaks to please thousands of special interests.

These tax breaks accumulate like barnacles, making it harder and harder for ordinary people to figure their own taxes.

Many turn to professional tax preparers. But even Internal Revenue Service personnel often get confused and disagree among themselves over sticky tax questions.

Tax breaks Â? special deals for politically favored industries, companies, families and individuals Â? are the basic problem. Life would be a lot simpler for us all if Washington would just eliminate most tax breaks. A bonus: The government could then lower overall tax rates without losing revenue.

ThatÂ?s a simple concept even a harried treasury secretary should be able to understand. Geithner should pursue it.